Journalize the Following Purchase Transactions for ABC Swimming Pool Supply

question 151

Essay

Journalize the following purchase transactions for ABC Swimming Pool Supply Company using the periodic inventory system.Explanations are not required.
$$\begin{array} { | l | l | } \hline \text { May 2 } & \begin{array} { l } \text { Purchased } \$ 5,280 \text { of merchandise inventory on account under } \\\text { terms } 3 / 10 , \mathrm { n } / 30 \text { and FOB shipping point. }\end{array} \\\hline \text { May 6 } & \text { Returned } \$ 675 \text { of defective merchandise purchased on May 2. } \\\hline \text { May 8 } & \text { Paid freight bill of } \$ 120 \text { on May } 2 \text { purchase. } \\\hline \text { May 12 } & \text { Paid amount owed on credit purchase on May } 2 . \\\hline\end{array}$$

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Definitions:

Monopolist

A single firm or entity that is the exclusive provider of a good or service, thus controlling its market price.

Lerner Indices

Measures of a firm’s market power based on the difference between price and marginal cost, normalized by the product's price.

Marginal Cost

The increase or decrease in the total cost incurred by producing one more unit of a good or service.

Lerner Index

A measure of a firm's market power, calculated as the difference between price and marginal cost, normalized by price.